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Broadcom shares soared 9.4% on Friday after the chipmaker said on its earnings call that it had secured a new $10 billion customer. Analysts quickly pointed to OpenAI.
Following a better-than-expected earnings report late Thursday, Broadcom CEO Hock Tan told analysts that a fourth large customer had put in orders for $10 billion in custom artificial intelligence chips, which the company calls XPUs.
"One of these prospects released production orders to Broadcom, and we have accordingly characterized them as a qualified customer for XPUs," Tan said. He added that the order increased Broadcom's forecast for AI revenue next year, when shipments will begin.
Analysts at Mizuho, Cantor Fitzgerald and KeyBanc